RHCAUTIOUS

RH Quick Ratio Analysis

0.13x

Higher than 8% of Consumer Cyclical sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to pay short-term obligations using its most liquid assets, such as cash, marketable securities, and receivables, without relying on inventory sales.

Sector Performance

8th percentile

0.13x

Sector Median

0.61x

Sector Avg

2.25x

Prior Period

0.17x(May 2026)

↓ Declining

📊

Deep Analysis

The quick ratio measures a company's ability to pay short-term obligations using its most liquid assets, such as cash, marketable securities, and receivables, without relying on inventory sales.

At 0.13x, RH holds only $0.13 of liquid assets for every $1 of current liabilities, indicating a thin liquidity buffer. This sits far below the sector median of 0.69x, placing RH in the 7th percentile among Consumer Cyclical peers, meaning most comparable companies have much stronger short-term coverage. The year-over-year change is N/A and the quarter-over-quarter change is N/A, so no trend direction can be confirmed over the last 8 quarters from the provided data. The combination of a very low ratio with no observable trend raises liquidity risk, as the company has limited cushion against near-term obligations without external funding. This metric directly supports the overall CAUTIOUS verdict, reinforcing concerns about financial flexibility rather than contradicting them.

Frequently Asked Questions

What does the Quick Ratio tell investors about RH?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

How does RH's Quick Ratio compare to its sector?

RH's Quick Ratio of 0.13x compares to a Consumer Cyclical sector median of 0.61x, placing it in the 8th percentile.

Who are RH's closest peers by Quick Ratio?

The closest Consumer Cyclical peers by Quick Ratio include: PDD (0.61x), CZR (0.62x), PHM (0.54x), TSLA (0.54x), YUM (0.49x).

📚

Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.